Wall Street extended a lackluster performance on Tuesday, with two of its major indices ending with marginal movements amid a series of key economic factors dampening investor sentiment.
Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.
Mirroring the mostly broader pessimism are 10 companies, with two even falling to new all-time lows. In this article, we have detailed the reasons behind their drop.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A stock market data. Photo by Alesia Kozik on Pexels
10. MARA Holdings Inc. (NASDAQ:MARA)
MARA Holdings Inc. fell to its lowest level on Tuesday, touching $12.05 before early bargain-hunting persisted at intra-day trading, pushing its stock a little higher to end at $12.41 apiece.
Tuesday finished represented a 10.62-percent drop as well as its third consecutive day in the red territory, with the drop in line with other cryptocurrency stocks amid Bitcoin’s downward trajectory.
The cryptocurrency, which was trading at all-time highs following President Donald Trump’s support of the industry, lost as much as 19 percent to just around the $88,000 level as of this writing, from the $109,000 record on January 20 when Trump returned to the White House, as investor caution appeared to have taken center stage amid uncertainties from government policies under his administration.
MARA, a Bitcoin mining company, is currently one of the largest Bitcoin miners and holders, with a total of 44,893 Bitcoins.
9. Rigetti Computing Inc. (NASDAQ:RGTI)
Rigetti Computing Inc. dropped for a third consecutive day on Tuesday, losing another 10.77 percent to finish at $9.03 as investors sold off positions ahead of the company’s release of its earnings performance on Wednesday next week, March 5.
Investors will be looking out for any cues on the company’s business outlook for the year, especially with the competition heating up from the sudden emergence of quantum computing firms in China.
To recall, several US quantum computing stocks dropped on news last week that a startup Chinese quantum computing company called Origin Quantum Computing has created a prototype machine that features 72 working qubits.
Meanwhile, Rigetti Computing is expected to release a 36-qubit system based on four 9-qubit chips by mid-2025.
By the end of the year, RGTI expects to release a system with over 100 qubits with a targeted 2x reduction in error rates from the current level.
8. Trip.com Group Limited (NASDAQ:TCOM)
Trip.com Group Limited tumbled by 11.38 percent on Tuesday, finishing the trading session at $57.30 apiece, shunning news of impressive performance last year.
In its latest earnings release, TCOM said net income for the last quarter of 2024 surged by 63 percent to RMB2.191 billion from RMB1.342 billion, as revenues rose by 23.5 percent to RMB12.768 billion from RMB10.338 billion.
Meanwhile, net income for full year 2024 expanded by 72 percent to RMB17.227 billion from RMB10.002 billion, while revenues increased by 19.8 percent to RMB53.377 billion from RMB44.562 billion.
As part of its ongoing commitment to deliver stakeholder value, the company announced a cash dividend of $0.30 per share, for a total of $200 million. The dividends are as of the record date of March 17, 2025, payable on March 27, 2025.
7. MicroStrategy Incorporated (NASDAQ:MSTR)
MicroStrategy Incorporated, doing business as Strategy, declined for a third day on Tuesday, losing 11.41 percent to close at $250.51 apiece as investors sold off positions in cryptocurrency stocks amid Bitcoin’s drop to a three-month low.
The cryptocurrency, which was trading at all-time highs following President Donald Trump’s support of the industry, lost as much as 19 percent to just around the $88,000 level as of this writing, from the $109,000 record on January 20 when Trump returned to the White House, as investor caution appears to have taken center stage amid uncertainties from government policies under his administration.
Last month, MSTR bought another $1.1 billion of Bitcoin, its largest purchase so far, bringing its total ownership to 461,000. The latest purchase was funded through the issuance and sale of shares.
6. Super Micro Computer Inc. (NASDAQ:SMCI)
Super Micro Computer Inc. fell for a fourth day on Tuesday, losing 11.76 percent to end at $45.54 apiece ahead of the submission of its delayed filings to retain its position as a Nasdaq-listed company.
However, SMCI surprised investors when it was able to submit its delayed filings after market hours, pushing the company’s after-hours price higher by 20 percent.
SMCI said in a statement that the Nasdaq accepted its compliance with the exchange requirements and that the matter is now closed.
In its delayed annual report, SMCI said sales in fiscal year 2024 more than doubled to $14.99 billion year-on-year on the back of growing demand for its products to support artificial intelligence.
Earlier this month, SMCI said revenue could hit $40 billion in fiscal year 2026 after reaching $23.5 billion to $25 billion in 2025.
5. Celsius Holdings Inc. (NASDAQ:CELH)
Shares of Celsius Holdings Inc. dropped 14.33 percent on Tuesday to end at $26.88 apiece as investors took profits following a surge last week buoyed by its recent upgrade and concerns over the recent acquisition of its competitor.
According to the company, it entered into a definitive agreement to acquire Alani Nutrition LLC for a total transaction of $1.8 billion, which includes taxes amounting to $150 million.
According to CELH, its acquisition was part of its strategy to bolster growth. By combining with Alani Nu, the two brands are expected to hold a 16-percent market share in the energy drink sector.
The acquisition is expected to be completed in the second quarter of the year.
Meanwhile, CELH also earned a higher price target from TD Cowen at $30 versus $29 previously. The investment firm, however, maintained a “hold” rating on CELH’s shares.
4. Tempus AI Inc. (NASDAQ:TEM)
Tempus AI Inc. saw its share prices fall by 15.05 percent to finish at $59.10 apiece as investors sold off positions following dismal earnings performance in full-year 2024.
In a statement, TEM said net loss for full year 2024 expanded by 229 percent to $705.8 million from $214 million in 2023, despite revenues increasing by 30.5 percent to $693 million from $531 million.
Meanwhile, net loss for the fourth quarter narrowed by 74 percent to $13 million from $50.5 million in the same period last year.
For this year, TEM expects full-year revenue of approximately $1.24 billion for the consolidated TEM and Ambry Genetics business, which represents approximately 79 percent annual growth, and adjusted EBITDA of $5 million for the full year 2025, an improvement of approximately $110 million over 2024.
3. Civitas Resources, Inc. (NYSE:CIVI)
Civitas Resources Inc. fell to its lowest price of $40.26 on Tuesday before gaining little momentum to end the day at $40.35 apiece, or down by 18.15 percent from its previous close following mixed earnings performance in the fourth quarter and full year 2024.
In its latest earnings release, CIVI said net income in the last quarter of the year dived by 50 percent to $151 million from $302 million registered in the same period a year earlier, despite total operating revenues growing by 14.7 percent to $1.292 billion from $1.126 billion year-on-year.
However, net income for full year 2024 increased by 6.8 percent to $838 million from $784 million, with total revenues growing by 49 percent to $5.206 billion from $3.479 billion.
2. Sempra (NYSE:SRE)
Sempra shares plummeted by 18.97 percent on Tuesday to close at $70.64 each as investor sentiment was dampened by a disappointing outlook for 2025 amid expected challenges that could put pressure on the company’s profitability.
In its earnings call, SRE lowered its annual profit forecast following the rate case decision in California which came below its expectations.
Utilities use rate case proceedings to determine the amount that the customers will need to pay for electricity and natural gas services.
From $4.9 to $5.25 earnings per share forecast previously, SRE now expects EPS to settle between $4.3 to $4.7.
“We’ve assumed higher interest expense as a result of higher capital investments in 2025,” the company said.
SRE also raised its capital expenditure program by 16 percent over the next four years to improve grid resiliency amid rising energy demand from data centers for artificial intelligence.
1. Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers Health Inc. plummeted by 22.32 percent on Tuesday to end at $39.86 as investors continued to unload portfolios to mitigate risks following the Food and Drug Administration’s announcement that the supply shortage for the bestselling weight loss and diabetes treatment manufactured by one of its competitors has already been addressed.
According to the FDA, supply is currently meeting or exceeding demand, and Novo Nordisk has developed a product inventory to cover future demand.
The news took a heavy hit on HIMS, which has been making a compounded knock-off version of the blockbuster treatments, at a time when it announced the purchase of a plant to manufacture the class of drugs that includes Wegovy and Ozempic.
US regulations allow compounding pharmacies to copy branded medicines that are facing supply shortages. Wegovy and Ozempic have been in shortage in the US for already two years.
While we acknowledge the potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
